Summer traing project report

Significant Considerations in the Purchase of Electronic Home

Appliances

Submitted by:

Reema Jaggi

University Roll No. - 94972238218

Submitted in partial fulfilment of the MBA program 2009-2011

PUNJAB COLLEGE OF TECHNICAL EDUCATION, LUDHIANA

Acknowledgement

My training period had been a great learning experience and it wouldn’t have been without

the support of various people, who helped me to accomplish my project successfully. I

express my sincere thanks to all those who had guided me in one or the other way.

I would like to thank Mr. Hemant Bhalla(Associate Manager-Marketing),Godrej &

Boyce Manufacturing Co. Ltd. for giving me an opportunity to prove my worthiness in the

Marketing Department of the company and providing me with an insight into the marketing

world. He always proved as an excellent project guide & without his guidance this training

would not have been successful. I have seen in him an exceptional leader and will try to

follow and implement some of the techniques.

I would also like to thank all members of the Marketing Department who at all times treated

me as a part of their department and not as outside trainee. I am also thankful to the various

heads of departments and their assistants for sharing their experiences and also for giving

their valuable suggestions.

I would like to thank my mentor Ms Chitwan Bhutani who was there to guide me through

out my project and helped in the completion of the final report.

Date: 9th August,2010

Place: Ludhiana Reema Jaggi

Declaration

I Reema Jaggi of PCTE do hereby declare that this project relating to “Dealer’s perspective

regarding appliances- Case Study on GODREJ”, has been prepared by after completing my

dissertation in the same, as a part of my requirements of the MBA program of PCTE batch

2009-2011.

My guide to this project was Ms Chitwan Bhutani.

Reema Jaggi

(University Roll No.

MBA (Batch 2009-2011)

PUNJAB COLLEGE OF TECHNICAL EDUCATION

Certificate-1

This is to certify that report entitled “Dealers’ Perspective regarding appliances- Case Study

on GODREJ” submitted for the degree of MBA in subject of summer training report, is a

bonafide research project carried out by Reema Jaggi, PCTE student under my supervision

and no part of this report has been submitted for any other degree.

The assistance and help received during the course of investigation have been fully

acknowledged.

Ms Chitwan Bhutani

Major Advisor

UNIT CONTENTS Pg.No.

A Chapter-1 Corporate profile

History

Pirojsha Godrej

Incorporation

Corporate timeline

Board of Directors

Annual sales

Organisational chart

Corporate Mission

Corporate shared values

Corporate Care

Godrej Group Profile

Business Profile

Awards and Honours

Branch Locations and Godrej Group

Godrej & Boyce Mfg. Co. Ltd.

Products & services

Products of appliance division

Shareholders

Employees

Statutory auditors

Corporate concerns

1-29

The Pirojsha Godrej foundation

The Soonabai Pirojsha Godrej foundation

The Godrej memorial trust

Naoroji Godrej center

Swot Analysis

Bankers

Human Resource

Planning

Chapter-2 Financial analysis

Ratio analysis

Trend analysis

30-46

CONTENTS- UNIT B Pg.No.

48

49-53

54-61

62-80

81

82

83

84

(I) INTRODUCTION

(II) REVIEW OF LITERATURE

The Study

Need of Study

Research Objectives

(III) RESEARCH METHODOLOGY

Concept of marketing research

Research design

Limitations of the research

Sampling design

Limitations of Study

(IV)DATA ANALYSIS AND INTERPRETATION

CONCLUSION

SUGGESTIONS AND RECOMMENDATIONS

BIBLIOGRAPHY

ANNEXURE 1

Table No. List of tables Pg.No.

1.1

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

4.14

4.15

4.16

4.17

Trend Analysis

Experience of Dealers

Brands represented by dealers

Products represented by dealers

Factors considered while dealing with a brand

Factors influencing dealers to do more sales

Extra benefits given on bulk sales

Dealership with Godrej appliances

Godrej products dealt by dealers

Display of Godrej appliances

Products generating more sales

Reasons for low sales of least saleable item

Satisfaction with regard to company’s offered services

Satisfaction with regard to promptness

Satisfaction with regard to promotional tools

Continuation of dealership with Godrej

Reasons for quitting dealership with Godrej

Dealers’ preference to deal with Godrej in future

45

63

64

65

66-67

68

69

70

71

72

73

74

75

76

77

78

79

80

Fig No. List of Figures Pg.No.

1.1

1.2

1.3

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

4.14

4.15

4.16

4.17

Trend of Turnover

Trend of Net profit

Trend of EPS

Experience of Dealers

Brands represented by dealers

Products represented by dealers

Factors considered while dealing with a brand

Factors influencing dealers to do more sales

Extra benefits given on bulk sales

Dealership with Godrej appliances

Godrej products dealt by dealers

Display of Godrej appliances

Products generating more sales

Reasons for low sales of least saleable item

Satisfaction with regard to company’s offered services

Satisfaction with regard to promptness

Satisfaction with regard to promotional tools

Continuation of dealership with Godrej

Reasons for quitting dealership with Godrej

Dealers’ preference to deal with Godrej in future

45

46

47

63

64

65

66-67

68

69

70

71

72

73

74

75

76

77

78

79

80

UNIT-A

Chapter-1

CORPORATE

PROFILE

HISTORY

Pirojsha Godrej

The Company celebrated its centenary in 1997. In 1897 a young man named Ardeshir Godrej

gave up law and turned to lock making. Ardeshir went on to make safes and security

equipment of the highest order, and then stunned the world by creating toilet soap from

vegetable oil.

His brother Pirojsha Godrej carried Ardeshir's dream forward, leading Godrej towards

becoming a vibrant, multi-business enterprise. Pirojsha laid the foundation for the sprawling

industrial garden township (ISO 14001-certified) now called Pirojshanagar in the suburbs of

Mumbai. Godrej touches the lives of millions of Indians every day. To them, it is a symbol of

enduring ideals in a changing world.

Incorporation

Established in 1897, the Company was incorporated with limited Liability on March 3, 1932,

under the Indian Companies Act,1913.

Corporate Timeline

1897 - Godrej & Boyce Mfg. Co. Ltd established

1918 - Godrej Soaps Limited incorporated

1961- Godrej Started Manufacturing Forklift Trucks in India

1971- Godrej Agrovet Limited began as an Animal Feeds division of Godrej Soaps

1974 - Veg oils division in Wadala, Mumbai acquired

1990 - Godrej Properties Limited, another subsidiary, established

1991 - Foods business started

1991 - Godrej Agrovet Limited incorporated

1994 - Transelektra Domestic Products acquired

1995 - Transelektra forged a strategic alliance with Sara Lee USA

1999 - Transelektra renamed Godrej Sara Lee Limited and incorporated Godrej

Infotech Ltd.

2001 - Godrej Consumer Products was formed as a result of the demerger of Godrej

Soaps Limited. Godrej Soaps renamed Godrej Industries Limited

2002 - Godrej Tea Limited set up

2003 - Entered the BPO solutions and services space with Godrej Global Solutions

Limited

2004 - Godrej HiCare Limited set up to provide a Safe Healthy Environment to

customers by providing professional pest management services

2006 - Foods business was merged with Godrej Tea and Godrej Tea renamed Godrej

Beverages & Foods Limited

2007 - Godrej Beverages & Foods Limited formed a JV with The Hershey Company

of North America and the company was renamed Godrej Hershey Foods & Beverages

Limited

2008 - Godrej relaunched itself with new colourful logo and a fresh identity music

Board of Directors

Chairman & Managing Director: JAMSHYD N. GODREJ

Executive Directors:

Phiroze D. Lam : Executive Director and President of the co.

Kyamas A. Palia : Executive Director(Finance)

Vijay M. Crishna : Lawkim Motors

Anil G. Verma : Personal & Administration

Non-executive Directors

Adi B. Godrej : Chairman - Godrej Group

Nadir B. Godrej : MD – Godrej Industries,

Chairman - Godrej Agrovet

Kavas N. Petigara : Chemical consultant & Businessman

Behram A. Hathikhanavala : Management Consultant

Fali P. Sarkari : Chartered accountant

Pradip P. Shah : Financial Advisor

Anita Ramachandran : HR consultant

Sales (including excise duty)

Fiscal Year 2008-09: Rs. 43 billion (US$ 881 million)

Combined Sales of the Company and its major subsidiaries and

affiliates, for FY 2008-09: Rs. 107 billion (US$ 2.3 billion)

Organisational Chart

ASM ASM

ASM

ASM ASM ASM

George Menzes

(COO)

Kamal Nandi

(VP-Sales & Marketing)

Mohali

Branch

Ramandeep Singh Trehan

(GM-Sales)

19 Branches

Atin

RSM-Haryana

Bikram Jit Singh

RSM-Punjab

Vijayesh Rana

RSM-Chandigarh

Ramesh Chembath

Head-Marketing

Hemant Bhalla

AM-Marketing

Corporate mission

We shall operate in existing & new businesses which capitalize on the Godrej brand

& our corporate image of reliability and integrity.

Our objective is to delight our customers, both in India and Abroad.

We shall strive for excellence by nurturing, developing & empowering our employees

& suppliers.

We shall encourage an open atmosphere conducive to learning & team work.

We shall achieve these objectives through continuous improvement in quality, cost &

customer service.

Corporate Shared Values

Commitment to quality

Dedication and commitment

Customer orientation

Honesty & integrity

Learning organization

Openness & transparency

Team work

Respect, care & concern for people

Trust

Corporate Care

As we complete our first century and enter the next one, our vision shines on with

brightness our founder intended- The concept of trusteeship of wealth.

Begun with a spontaneous donation of Rs.3 lac to the Tilak fund by Ardeshir Godrej,

this initiation of philanthropy was strengthened by Pirojsha Godrej, who made it a

corporate policy.

Along with housing, schooling, medical aid & paid leave to workers, Pirojsha was

also deeply concerned about environmental & social causes.

This vision continues to be the leading light in our lives.

Godrej Group Profile

Started in 1897 as a locks manufacturing company, the Godrej Group is today one of the

most accomplished and diversified business houses in India. Godrej's success has been driven

by the company's commitment to delivering innovation and excellence. Through the

consistent application of this commitment and a century of ethical business conduct, Godrej

has earned an unparalleled reputation for trust and reliability.

In 1930, Godrej became the first company in the world to develop the technology to

manufacture soap with vegetable oils; that spirit of innovation has continued throughout the

organization's history. Today Godrej is delivering consumers exciting innovations across a

spectrum of businesses. The company's pursuit of excellence is equally well established and

enduring.

In the 1944 Mumbai docks blast, Godrej safes were the only security equipment whose

contents were unharmed; an equal level of product quality continues to be expected from

every product bearing the Godrej brand name. Godrej management understands that the

company's greatest asset is the trust and faith that consumers have reposed in it, and

recognizes that the company must continue to earn this trust.

This translates to the organization delivering outstanding quality and value in everything it

does.

Godrej's ethical and visionary practices have allowed the company to successfully expand

into a number of businesses. Today Godrej is a leading manufacturer of goods and provider

of services in a multitude of categories: home appliances, consumer durables, consumer

products, industrial products, and agri products to name a few. A recent estimate suggested

that 350 million people across India use Godrej products. The group has more recently

entered the real estate and information technology sectors, and management views these as

avenues for enormous growth.

The Godrej Group stands in a strong position today. With annual sales in excess of $1 billion,

a workforce of approximately 18,000, and a strong diversified portfolio, Godrej has proven

its ability to deliver strong financial performance.

Business profile

Godrej group of companies are today’s one of the largest engineering and consumer products

company in the country having varied interests from engineering to personal care products

with a total sales turnover of about US$ 1.7 bn.

It is also one of the most respected corporate houses known for its philanthropy and initiation

of labour reforms besides being recognised for its values of fair, transparent and ethical

dealings.

The company has the following businesses which manufacture and market a wide range of

consumer durables and industrial products:

Chemicals

We are India’s leading manufacturers of oleo chemicals and over hundreds of different

industrial chemicals. With our global reach spreading wings across 40 countries, we were

conferred the prestigious exports award by Chemexcil for 3 consecutive years in 1998-99,

1999-00 and 2000-01.The products in our portfolio are used in a variety of applications:

cosmetics, tyres, detergents, pharmaceuticals, cigarettes, toothpaste and more.

Associate Companies

Godrej Properties

Godrej Properties was incepted in 1990 with an aim of providing ultra-modern townships to

discerning customers at affordable prices. It adheres to a simple philosophy of providing

exemplary service based on the optimal use of available resources.

Godrej Consumer Products

Godrej Consumer Products is a major player in the Indian FMCG market with a huge

portfolio of products in the form of personal, hair, and household & fabric care segments.

With 3 state-of-art manufacturing facilities at Malanpur (MP), Guwahati (Assam) and Baddi

(HP), this division employs 950 people across these industrial plants.

Godrej Household Products

Godrej Household Products Limited (GHPL) is a wholly owned subsidiary of Godrej

Consumer Products Limited. With strong brands like Good Knight, HIT, Jet, Ambipur,

Brylcreem and Kiwi, GHPL is the market leader in the Indian household insecticides

category and has a dominant presence in the air care, shoe care and male hair care markets.

Godrej Hershey

Godrej Hershey is one of the most respected business conglomerates established in 2006 with

a prime focus on the food division. The range of products from the house of Godrej Hershey

covers a number of popular products in the segment of Confectionery, Non Carbonated

Beverages, Cooking Aids, Packet Tea and Edible Oil.

Godrej Agrovet

Godrej Agrovet, formerly a division of Godrej Soaps Ltd. was reformed in 1971 with a focus

on the agricultural sector. Over the years this division has developed a close relationship with

farmers with its innovative offerings in the form of animal feed, oil palm plantations,

agrochemicals and poultry.

Awards and Honours

Godrej Consumer Products Limited ranks9th in the Great Place to Work Survey for

2008 .

GCPL, the Highest Ranked Indian FMCG in Asia's Hot Growth Companies' List by

Business Week .

Godrej Consumer Products Ltd. has been ranked14th in The Best

Companies to Work For study. This study was jointly conducted by Business Today,

Mercer and Taylor Nelson Sofres (TNS)

Godrej Consumer Products Ranks6th in ET-Hewitt Best Employers of India survey .

GCPL ranked15th in Great Places to Work 2006 survey .

The Corporate Citizen of the Year Award given by Economic Times.

Flagship brands Good knight,Cinthol and Ezee selected Super brands by the Super

brands Council.

Godrej Sara Lee, the JV between the Godrej Group and Sara lee Corporation, USA is

acknowledged the World's largest mat manufacturers and South Asia's largest

manufactures of Coils.

Godrej Consumer Products Limited, adjudged as a Business Super brand by the

Super Brands Council.

The Return on Capital Employed and Return on Net Worth ratios of Godrej

Consumer Products - the highest in corporate India.

Godrej Consumer Products was awarded the "Best Managed Workforce" award given

by Hewitt Associates and CNBC TV18.

Godrej Consumer Products features in the top 25 list of Great Places to Work

(survey conducted by Grow Talent in association with Business World) for four years

in a row.

Lifetime Achievement Award for Godrej Industries from CHEMEXCIL the basic

chemical pharmaceuticals and cosmetics experts promotion council

2006 Lalji Mehrotra Foundation Award for Excellence, conferred by National Society

for Equal Opportunities for the Handicapped. Great Son of India Award given to

Sohrab Godrej by National Convention for Protection of India's Resources and

Environment.

2005BNHS Green Governance Award for the Category - Conservation & Restoration

of Habitat, awarded to Godrej & Boyce Mfg. Co. Ltd

2003Economic Times Corporate Excellence Award for Corporate Citizenship

1994 Nisarga Mitra Award from Rotary Club of Bombay, Vikhroli for

Environmental Conservation

1991 Indira Gandhi Paryavaran Puraskar awarded to Sohrabji Godrej.

1989 Institution of Economic Studies Lok Shree Award for Social Commitment

towards the societ

New Delhi

Ghaziabad

Jaipur

Lucknow

Faridabad

Chandigarh

Mumbai Kolkata

Ahmedabad Bhubneshwar

Bhopal Guwahati

Jabalpur

Pune

Chennai

Bangalore

Coimbatore

Hyderabad

Kochi

Trivandrum

Vishakhapatnam

International operators

UK

Netherlands

South Africa

Kenya

Kingdom of Saudi Arabia

Branch

Locations

Bahrain

UAE

Oman

Sri Lanka

Bangladesh

Veitnam

Malaysia

Singapore

Godrej Group Structure

Godrej and Boyce Mfg. Co. Ltd.

Products and Services

APPLIANCES (ISO 9001/14001)

Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and DVD Players

“INTERIO” FURNITURE (ISO 9001/14001; OHSAS 18001)

Office Furniture - Desking, Seating, Open Plan Office Systems, Computer , furniture and

Storages; Home Furniture - Living, Dining and Bedroom furniture; Kitchen cabinets.

Laboratory furniture; Marine accommodation; Healthcare furniture; Turnkey interiors;

Carpet tiles; Mattresses

LOCKS (ISO 9001/14001; OHSAS 18001)

Padlocks, Furniture locks, Mechanical and electromechanical door locks,

Door Controls, Architectural and Glass Hardware, Customized solutions & “Cartini” range

of Scissors, Knives and Kitchen Accessories

SECURITY SOLUTIONS (ISO 9001/14001; OHSAS18001)

Strong Room Doors, Safe Deposit Lockers, Data/ATM Safes, Burglary and Fire Resisting

Safes; Record & Filing Cabinets, Cash Boxes, Coffers,

Electronic Safes, Hotel Safes; Currency Sorters & Cash Counting Machines; Fire Doors,

“Entranza” Home Doors; Marine Doors & Hatches; Premises Security Solutions;

Surveillance, Scanning and Screening Systems; Baggage Scanners, Door Frame Metal

Detectors, Access Control Systems; Fire and Burglar Alarm Systems, Video Door Phones

“PRIMA” VENDING AND AUDIO-VISUAL SOLUTIONS (ISO 9001)

Vending Machines and Operations (Services), Audio Visual Solutions

STORAGE SOLUTIONS (ISO 9001)

Shelving and Racking systems (Static and Mobile), Drive-in System,

Cantilever System, Mezzanine Floors, Gravity Flow System, Special

Warehousing Solutions, Tool Storage Cabinets, Work surfaces, Trolleys and Warehousing

Consultancy

MATERIAL HANDLING (ISO 9001/14001; OHSAS 18001)

Forklift Trucks (Diesel, Electric and LPG) and Attachments; Warehouse

Trucks; Tyre Handlers; Tele Handlers; Container Handling Trucks; Industrial Cleaning and

Personal Access Equipment; Spare Parts, Service and Maintenance Contracts; Trucks on

Hire, Pre-owned Trucks.

INDUSTRIAL PRODUCTS (ISO 9001/14001)

Sheet Metal Dies, Die Casting Dies, Thermo-compression Moulds, Special Purpose

Machines, Jigs and Fixtures, High Precision Components/Equipment for Engineering and

allied industries, Sheet Metal

Working Machines – Sales and Service

PROCESS EQUIPMENT (ISO 9001/14001; OHSAS 18001; ASME ‘U’,

‘U2’,‘U3’, ‘S’; NBBI ‘R’; AD Merkblatt ‘HP0’; Chinese ‘SELO’)

Heavy Walled Reactors, High Pressure Vessels, High Pressure Shell and

Tube Heat Exchangers, Reactor/Tower Internals and Trays

ELECTRICALS AND ELECTRONICS (ISO 9001/14001, OHSAS 18001)

Busbar Power Distribution Systems, Compressors and Compressed Air

Control Systems, Industrial Electronics and Automation, Energy

Conservation and Green Building Services, Turnkey Electrical and Power

Infrastructure Projects

“LAWKIM” ELECTRIC MOTORS (ISO 9001/14001/17025, CMRI, UL)

Motors (FHP, Custom-designed and Metric Motors for Hermetic, HVAC,

General Purpose Applications), Calibration and Testing (Electro-technical

and Thermal Calibration)

CONSTRUCTION AND REAL ESTATE

(ISO 9001/14001; OHSAS 18001)

Ready Mix Concrete, Construction Projects, Property Development, Real

Estate Leasing and Services updated

Products of the appliance division

o Refrigerators

Direct cool

Cold Gold Deluxe

Pantacool V2

Pantacool

Axis

No.1

GDC 110

Edge

Frost free

EON

Pantacool

o Air conditioners

Split AC

Mirror star series

Silver line series

Pearl series

Ivory series

Window AC

Navigator series

Maxi miser series

o Washing machines

Fully automatic

Semi automatic

o Microwave ovens

Steam

Convection

Grill/combination

Solo

SHAREHOLDERS

Since its inception, the Company is controlled by the GODREJ family based in Mumbai,

India. Its shares are not listed on any Stock Exchange. About one-fourth of the Company's

share capital is held by Pirojsha Godrej Foundation, a public charitable trust.

EMPLOYEES

10,700 (including 2,000 in Sales and Service)

STATUTORY AUDITORS

KALYANIWALLA & MISTRY, Chartered Accountants

Corporate concerns

The concept of trusteeship of wealth. Begun by the founder Ardeshir Godrej through a

spontaneous gesture of a Rs. 3-lakh donation in 1926 to the Tilak Fund for the upliftment of

Harijans. Acknowledged by the Mahatma as the biggest contribution he had received for the

cause.

The initation of philanthropy by Ardeshir was strengthened by his brother Pirojsha, who

made it a corporate principle for the Godrej group. Anticipating labour legislation by

providing housing, schooling (epitomised today in the Godrej Udayachal Schools), medical

aid and paid leave to workers. Environment and social concerns were equally vital to his

vision. And to the vision of his sons, among whom, the yongest, Naval set up the Foundation

for Research in Community Health and the Foundation for Medical Research along with

Vasant Sheth of Great Easten Shipping Co. Ardeshir's vision is alive and throbbing. Through

organisations that have taken the trusteeship of wealth as a mission of their own.

The Pirojsha Godrej Foundation

The Pirojsha Godrej Foundation, established in 1972, owns one-third shares of the holding

company, Godrej & Boyce Mfg. Co. Ltd. The income from dividends is utilised for

promoting the objectives of the Trust, which includes providing medical relief to the poor and

critically ill, educational aid to students, and relief funds in case of natural disasters.

Apart from promoting culture and the time arts (through the Godrej Dance Academy), sea

cadets (Boating Section), libraries, school, blood banks, The Godrej Baug for low income

people, the Red Cross Disaster Center at Vikhroli and the Pirojsha Godrej Memorial Wing at

Breach Candy Hospital are born of this foundation.

Significant contribution have been made to, among others, the World Wide Fund for Nature-

India, the Bombay Environment Action Group, the Latur Earthquake Relief Fund, the Andhra

Cyclone Relief Fund, the Prime Minister Relief Fund and the Chief Minister Relief Fund.

The Soonabai Pirojsha Godrej Foundation

The Soonabai Pirojsha Godrej Foundation, founded in March, 1974, it provides fund for

education, and other worthy causes. The trust maintains large tracts of protected land for two

separate projects - the conservation of mangroves and building an integrated housing colony

for lower and middle income groups in association with the Housing Development Finance

Corporation.

The Godrej Memorial Trust

The Godrej Memorial Trust, established in 1994, the Trust is a voluntary, non-religious,

non-sectarian, non-political charitable trust which is involved in maintaining hospitals,

clinics, dispensaries and providing medical relief to the underprivileged. The Trust runs a

clinic in New Delhi which provides facilities for operations, examinations, immunization,

counseling and family welfare. The Trust has also initiated a project to establish a specialised

hospital near Delhi.

The Naoroji Godrej Center

The Naoroji Godrej Center for Plant Research, started in 1992, the Center is involved in

basic and applied research in horticulture, pisiculture, sericulture, floriculture and

preservation of endangered species. Beside this, it acquires land to conduct the above

activities on and ties up with institution/individuals to successfully execute community

projects. Its seven primary projects include the conservation of threatened plant species,

development of an ideal village and mass propagation of medical plants.

Swot analysis

Strength

Good corporate image

Experience in the line

Qualitative products

Weakness

Ineffective promotional tools

Weak branding

Inappropriate variants of products

Opportunities

Innovation in the product line

Threat

Competitors grab on the market

Competitors expansion in the market at a faster

pace

BANKERS

Central Bank of India

Union Bank of India

Citibank N.A.

ICICI Bank Ltd.

State Bank of Patiala

Axis Bank Ltd.

Export-Import Bank of India

Human Resource

What drives Godrej Industries Limited employees is the positive outlook towards work in an

environment of change that encourages innovation and lateral thinking to harness new concepts for

increasing maximum efficiency. The Godrej Industries employee is determined, ready to learn and

committed to meeting and raising the organization's standards of quality, bringing the organisation to

the very forefront of the global FMCG and beverage industry.

Our employee is determined, loyal, committed and eager to learn and we provide this platform like

every other growing global entity. A complete teamwork is highly appreciated. Every Godrej

Industries employee works in harmony to reach higher goals and strive to take the organization

forward. Forming a team, whose sole purpose is to achieve its target under any circumstances, a team

that never compromises on quality and inner strength. The Godrej Industries Limited Human Resource

Department has initiated a metamorphosis within the organization - a phase of change to compete and

excel globally for future. HRD believes in the dynamics of change: if we always do what we had

always done, we will always get what we always got and we nurture a constant urge to achieve

something beyond the expected

To implement this change, Godrej Industries Limited is working to increase efficiency while reducing

unnecessary costs

and expenses. The HR has design a tailor-made HR roadmap, giving a new dimension to the HR

systems and processes, leading the organization towards an effective human engineering process.

HRD works towards enhancing the effectiveness and the efficiency of Godrej Industries Limited by

enriching individual maps of reality, by supporting personalized growth of the individuals, by

improving team-spirit and inter-personal communication of the organization's members.

It not only believes in harnessing internal pools of knowledge but also provides its employees a

platform for knowledge integration with internal as well as external sources. The Godrej Industries

Limited human resources department has become an eventful place with a focus towards attraction,

retention and development of talent, as it surges ahead to set higher performance thresholds. Our HR

motto states that - "We not only believe in blending Spirits into FMCG but also blending Aspirations

into Career.

Selection of any employee depends on the need in any sector. For this the particular department of

organization define the quality needed in employee and after this the HR department post the job on

different web sites, hire consultant or take placement from different colleges.

Promotion of the employee depends on the capability of employees learning means if the employee

can have ability or eagerness to learn the work of other department beside his work he will be

promoted. Also after the experience and quality of work any employee is promoted. Training and

Development is a part of any organization. Godrej Industries Limited believes in leveraging

technology to help it gain a competitive edge in the market place. Godrej has been one of the first

companies in the FMCG / Chemical industry. So they organize training program time to time

Planning

HRP is understood as the process of forecasting an organization’s future demand for, and supply of,

the right type of people in the right number. It is only after this that the HRM department can initiate

the recruitment and selection process. HRP is a sub-system in the total organization planning.

Organizational planning includes managerial activities that set the company’s objectives for the future

and determines the appropriate means for achieving those objectives. .an integrated part of strategic

management HRP is variously called strategic manpower planning, or for employment planning

PLANNING IN GODREJ

The costs of Human Resource planning are kept minimal as each plant/ profit centre has its

own Personal Department which provides all the respective plant’s requirements. Each

personal department comprises of four members.

The short term planning is conducted by each plant’s personal department with each team’s

respective heads.

The Long term planning is performed by superiors of each deptt. In accordance with

company’s interests and objectives.

The internal detailed planning is planned by each team separately.

In this way, it is lesser time consuming, energy, economic and also effective. The decisions are

agreed upon by most of the team members so they are more focused, clear, satisfied that even they

have a say in the working and meeting the targets set.

Chapter-2

Financial

Ratios

Ratio analysis

(I) LIQUIDITY RATIOS

Liquidity ratios measure the ability of the company to meets its current obligations. It

establishes the relationship between cash and other current assets to current obligation provide a quick

measure of liquidity. It includes following ratios:-

(a) CURRENT RATIO

current assets

Current ratio = ----------------------

current liabilities

Net current liability = Current Liability + Borrowing from bank

19191400

Mar’09 = -------------------- = 1.22:1

15787385

17792704

Mar’08 = -------------------- = 1.29:1

13833723

12844718

Mar’07 = -------------------- = 1.22:1

10495902

9736196

Mar’06= -------------------- = 1.29:1

7554033

Interpretation

The company’s current ratio is within the rule of thumb, ie. 2:1, which means that the company’s

liquidity position is quite satisfactory. The company’s current assets are sufficient to pay off its current

liabilities.

(b) LIQUID ASSETS RATIO

Liquid Assets

Liquid ratio = -----------------------

Current Liabilities

10935122

Mar’09 = -------------------- = 0.69:1

15787385

9437695

Mar’08 = -------------------- = 0.68:1

13833723

6361123

Mar’07 = -------------------- = 0.61:1

10495902

4665899

Mar’06 = -------------------- = 0.62:1

7554033

Interpretation

As a convention, 1:1 liquid ratio is considered satisfactory. According to this convention, the company

has satisfactory liquidity position. It was close to rule of thumb. The overall liquidity position is

sufficient.

(c) ABSOLUTE LIQUID RATIO

Absolute Liquid Assets

Absolute liquid ratio = -----------------------------------

Current Liabilities

33234

Mar’09 = -------------------- = 0.002:1

15787385

40854

Mar’08 = -------------------- = 0.003:1

13833723

57116

Mar’07 = -------------------- = 0.005:1

10495902

58265

Mar’06 = -------------------- = 0.008:1

7554033

Interpretation

Absolute liquid ratio is calculated to know how many liquid assets are available with the firm to pay

off its liabilities, if the need to pay them arises immediately. The rule of thumb for this ratio is 0.5:1

but the company has it below the rule of thumb, thus signifying dissatisfactory liquidity position in

terms of absolute liquid assets.

(II) PROFITABILITY RATIOS

Profitability ratios are calculated to measure the operating efficiency of the company.

Besides management of the company creditors and owners are also interested in the profitability of the

company. Creditors want to get it and repayment of principle regularly; owners want to get a required

rate of return on their investment.

(A) General profitability ratios

(a) GROSS PROFIT RATIO

Gross profit

Gross profit ratio = --------------------- *100

Net sales

Gross profit = Net sales - cost of goods sold

Cost of goods sold= opening stock + purchases + direct expenses – closing

stock

10464626

Mar’09 = --------------------- *100 = 25.93%

40351778

9995840

Mar’08 = --------------------- *100 = 28.80%

34711149

6968842

Mar’07 = --------------------- *100 = 26.18%

26614361

9041355

Mar’06 = --------------------- *100 = 44.73%

20212172

Interpretation

Since gross profit is decreasing from Mar’06 to Mar’09, it signals a bad profitability position of the

company. Since gross profit is calculated by deducting cost of goods sold from sales, it reflects that the

firm is inefficient in producing its products as cost of goods sold is increasing more than sales.

(b) OPERATING PROFIT RATIO

operating profit

operating profit ratio = --------------------- *100

Net sales

Operating profit = Net sales-( COGS + administration expenses + selling

& distribution expenses)

5826427

Mar’09 = --------------------- *100 = 14.44%

40351778

6033988

Mar’08 = --------------------- *100 = 17.38%

34711149

3707130

Mar’07 = --------------------- *100 = 13.93%

26614361

6423477

Mar’06 = --------------------- *100 = 31.78%

20212172

Interpretation

Operating profits are showing a declining trend from 2006 to 2009; it is due to ineffective cost control

in material consumption and cost reduction in manufacturing expenses. Overall as this ratio has

downward trend it indicates dissatisfactory profitability position of the company.

(c) OPERATING RATIO

Operating cost

operating ratio = --------------------- *100

Net sales

Operating cost= COGS + operating expenses

34525351

Mar’09 = --------------------- *100 = 85.56%

40351778

28677161

Mar’08 = --------------------- *100 = 82.62%

34711149

22907231

Mar’07 = --------------------- *100 = 86.07%

26614361

13788695

Mar’06 = --------------------- *100 = 68.22%

20212172

Interpretation

Operating ratio indicates the percentage of net sales that is consumed by operating cost. So, a very

high operating ratio is less favourable as it would leave a small margin(operating profit) to cover

interest , income tax, dividend and reserves. A percentage of 75-85% is considered favorable, and

Godrej is having a satisfactory operating ratio.

(d) NET PROFIT RATIO

Net profit after tax

net profit ratio = --------------------- *100

Net sales

2414381

Mar’09 = --------------------- *100 = 5.98%

40351778

1717303

Mar’08 = --------------------- *100 = 4.95%

34711149

1097632

Mar’07 = --------------------- *100 = 4.12%

26614361

392038

Mar’06 = --------------------- *100 = 1.94%

20212172

Interpretation

Net profit ratio has increased over the three years. It is due to cost savings on material consumption,

which is quite satisfactory for the company.

(B) OVERALL PROFITABILITY RATIOS

(a) RETURN ON SHAREHOLDERS’ INVESTMENT

Net profit after tax

Return on S/Hs investment = --------------------- *100

S/Hs funds

2414381

Mar’09 = --------------------- *100 = 26.54%

9097425

1717303

Mar’08 = --------------------- *100 = 25%

6868162

1097632

Mar’07 = --------------------- *100 = 19.54%

5616015

392038

Mar’06 = --------------------- *100 = 7.87%

4982733

Interpretation

ROI is of great importance as it depicts how much the company has accomplished its objective of

maximizing its earnings. As this ratio reveals how well the resources of a firm are being used, higher

the ratio, better are the results. The company’s ROI is increasing over the years which indicate a

favorable profitability position.

(b) EARNING PER SHARE

NPAT – Preference dividend

EPS = --------------------- *100

No.of equity shares

2414381

Mar’09 = --------------------- *100 = Rs.3.64

662910

1717303

Mar’08 = --------------------- *100 = Rs.2.59

662640

1097632

Mar’07 = --------------------- *100 = Rs.1.66

662640

392038

Mar’06 = --------------------- *100 = Rs.0.59

662640

Interpretation

As the return on the equity capital is increasing, so the EPS is increasing over the years and it shows

increase in the earning capacity of the company.

(c) FIXED ASSETS TURNOVER RATIO

COGS

Fixed assets turnover ratio = ---------------------

Fixed assets

29887152

Mar’09 = --------------------- = 4.58

6524423

24715309

Mar’08 = --------------------- = 4.79

5160322

19645519

Mar’07 = --------------------- = 4.22

4655390

11170817

Mar’06 = --------------------- = 2.61

4281291

Interpretation

Fixed assets turnover is the relationship b/w COGS and fixed assets employed in the business. The

increase in this ratio over the years shows increase in the efficiency of the company in using its capital

resources.

(d)WORKING CAPITAL TURNOVER RATIO

COGS

Working capital turnover ratio = ---------------------

Net working capital

29887152

Mar’09 = --------------------- = 31.38

952547

24715309

Mar’08 = --------------------- = 53.62

460911

19645519

Mar’07 = --------------------- = 53.32

368432

11170817

Mar’06 = --------------------- = 45.59

245006

Interpretation

Working capital turnover ratio depicts the velocity of the utilization of net working capital. Although it

is increasing between the years Mar’06 and Mar’08, but it again comes back to 31.38% in Mar’09.

(III) Activity ratio

Stock turnover ratio= COGS

----------------

Average stock

Mar’09 = 29887152

------------------ = 3.60

8305643

Mar’ 08 = 24715309

------------------ = 3.33

7419302

Mar’07 = 19645519

---------------- = 3.40

5776946

Mar’06 = 11170817

--------------- = 2.20

5070297

Inventory conversion period

Mar’09 = 365

-------- = 101days

3.60

Mar’08 = 365

-------- = 110 days

3.33

Mar’07 = 365

--------- = 107 days

3.40

Mar’06 = 365

-------- = 166 days

2.20

Interpretation

Every firm has to maintain a certain level of inventory of finished goods so as to be able to meet the

requirements of the business, and in case of Godrej, the inventory turnover ratio holds utmost

importance. Closely associated with it is the inventory conversion period, which is imperative to know

the average time taken for clearing the stocks.

In case of Godrej, inventory conversion period is very high in all the four years, which means that the

company is not able to clear its stock in time. However, after 2006, this ratio is showing a declining

trend.

Trend analysis

A. Turnover

B. Net profit

C. Earning per share

Table 1.1

Fig 1.1(a)

Year Turnover Trend Net profit Trend EPS Trend

2006 20212172 100 392038 100 0.59 100

2007 26614361 131.67 1097632 279.98 1.66 281.36

2008 34711149 171.73 1717303 438.05 2.59 438.98

2009 40351778 199.64 2414381 615.85 3.64 616.95

2010(projected) +33.98% 233.62 +167.93 783.78 +167.79 784.74

Fig 1.1(b)

Fig 1.1(c)

Part –B

Chapter-I

Introduction

It is a thing of massive gratification for me to present This Summer Training Project Report on the

topic “Significant considerations in the purchase of Electronic Home appliances”. Home Appliance

Product is on the rise and recent technological innovations have dramatically enhanced the capabilities

of the same. Leveraging the power of these new capabilities, various business sectors are working

together to offer a wide array of services. Each sector is looking for the next “killer application,” yet

we are still learning about people’s information and Daily needs.

By this practical training I am able to equip the manager with the understanding, the thinking, the

knowledge, and the skills for today’s and also for tomorrow’s market exigency. Initially I was just

having the bookish knowledge about all Marketing policies, practices and functions, but after joining

this organization, I got most of the practical knowledge. I have come to know, what actually happens

in the organizations.

Though it is not possible to have the information of all the spheres in market, in such a very short

period, but I tried to get more and more about all functions and practices applied in practical working.

This project report has been painstakingly and thoroughly prepared to cover extensively various facets

– both micro as well as macro. Its coverage is broad and up to date and it is balanced in terms of

concept and application. Since customers are the most important asset of any organization, there is

increased emphasis on the need for understanding people in a manner to satisfy them through quality

of services. The language of the presentation is highly communicative so that it becomes interesting

and comprehensible

Chapter- II

Review of Literature

A literature review is a body of text that aims to review the critical points of current knowledge on a

particular topic. Literature reviews are secondary sources, and as such, do not report any new or

original experimental work. Its ultimate goal is to bring the reader up to date with current literature on

a topic and forms the basis for another goal, such as future research that may be needed in the area. A

good literature review is characterized by: a logical flow of ideas; current and relevant references with

consistent, appropriate referencing style; proper use of terminology; and an unbiased and

comprehensive view of the previous research on the topic.

Hundal(2008), “Significant considerations in the Purchase of Consumer Durables”

concluded in his study that the consumers have a preference/loyalty towards particular

brand of consumer durables and are not ready to buy any other brand so easily.

Location convenience and Dealer relationship is one of the most consideration followed

by the After Sales Services and Variety provided by the brand also play a crucial role.

Instalment facility is also an important consideration which cannot be ignored at all. All

these factors create intensity of Brand Loyalty towards a particular brand.

Khanna(2008),” godrej launches DAC plus washing machines” in his article pointed

out that Godrej Appliances launched a range of washing machines with DAC +

(dynamic aqua-power control) technology with enhanced features in the fully automatic

top-load segment. The company introduced washing machines with DAC technology in

September last year. The technology enables the washing machine to adjust to water

and power cuts. The memory back-up enables the machine to start the wash from

exactly where it had stopped in case of power failure. The overflow rinse, soft dry and

water optimiser features enables it to customise water level selection. Speaking at the

launch, Kamal Nandi , Vice President , Sales and Marketing, said the price range of

different variants would be Rs. 12000-16000.

Bhalla(2007) “Godrej invests in Ozone-Friendly Refrigerators” in his article revealed

that Indian refrigerator and washing machine company Godrej Appliances, Ltd.

recently announced it has invested 46 million rupees(about $992,684) in its facilities in

Mohali and Vikhroli, India to support the development of CFC , HFC and HCFC- free

refrigerators. Additionally, the company said it plans to reenter the air conditioning

market, after exiting the retail A/C segment.

Trivedi(2007) “Godrej EON Range :Stylish Outside, Smart Inside!” in his article

remarked that the EON range is a distinct group of products catering to the premium

market segment, where attractive looks and novel features are also an important

consideration for the customer, besides quality manufacturing and service- which

Godrej is well known for. Designs base on in-depth consumer research, the EON range

represents a perfect blend of aesthetics and innovative features that bring life to the

home or office where they are proudly placed. Quite simply, EON is a beautiful range

from Godrej Appliances that gives you products you always desired which are:” Stylish

Outside, Smart Inside.”

Menezes(2007), “EON Microwave Ovens” revealed that the EON brand was extended

into Microwave Ovens with India’s first ever Steam Microwave Oven that cooks

delicious, healthy dishes without destroying the nutrient value or texture of the

ingredients. With the growing health conscious market, especially among the upper

income bracket, this innovative “Godrej Microsteam” with its unique steam cooking

mode in addition to the regular modes, has been well received in the market and is

targeted for larger growth in the upcoming season. In Punjab, Godrej Microwave Ovens

have grown by 167% in terms of volume in this category( Jan-Jun ’07 Vs. Jan-Jun ’06).

Menezes(2007), “Godrej Appliances to focus on EON Range in Punjab” in his article

concluded that Godrej Appliances, a leading player in the Home Appliances industry in

India has shown tremendous success with its EON range of refrigerators, air

conditioners and microwave ovens since their launch. Encouraged by the success and

positive feedback from the market, Godrej Appliances plans to increase its thrust on its

EON range across Punjab and the north markets where it sees huge potential. Punjab is

a high potential market for Godrej Appliances where we have always received strong

acceptance of our products. While it will continue to strengthen its expansion in the

state with a larger range of innovative and energy efficient products, they plan to give

special focus to the EON range, where it has seen a lot of demand from the market.

Punjab is a very progressive state where increased household incomes and modern

lifestyles have indicated an increasing demand for premium products. Soon they will

also introduce Washing Machines and Home Theatre Systems under the EON

umbrella.”

Trivedi(2007),”Godrej to put EON Brand on Premium Range” concluded that Godrej

Appliances, a division of Godrej & Boyce Mfg Co. Ltd. Has decided to use its EON

brand, introduced last year for a new range of frost-free refrigerators, for all its

premium appliances in a brand makeover. By the end of 2007, EON would figure on

all its premium products. Kamal nandi, vice-president for sales & marketing , said

Godrej first introduced its EON brand last year on a new range of frost-free

refrigerators .Now, it aims to bring its steam microwave oven, washing machines and

DVDs under the EON brand by the end of 2007. For its appliance business alone ,

Godrej is aiming at a 40% growth in 2007-08.

Menezes(2006), “Godrej looks at doubling its microwave market share by 07-08”

concluded that Godrej Appliances, the flagship division of the Rs. 5,500 crore Godrej

& Boyce Co Ltd, is planning to double its market share in the microwave category to

10 per cent by 2007-08 end through sale of approximately one lakh units. The industry

is all set to grow at more than 70 per cent in the coming year and is expected to cross

sales of ten lakh units. We target to garner a share of 10 per cent of this sales by FY

07-08 end.

Nandi(2006), “Godrej & Boyce plans to enter CTV segment” remarked that Godrej &

Boyce is planning to expand its business in the consumer durable space with a full –

fledged entry into the consumer electronics market. The appliance division of the

company has been traditionally selling refrigerators and lately air-conditioners,washing

machines, microwave ovens and DVD players. It is now also looking to enter the

colour TV segment.the company is looking at various business models to enter the

market, including product-sourcing tie-ups.

Rajendran(2006), “Godrej launches microwave ovens”, concluded that the appliance

division of Godrej & Boyce recently introduced the new range of microwave ovens for

convenient 5-star cooking for all households. The executive chef, The Radisson

Chennai, demonstrated mouth –watering, %-star dishes prepared in a quick and

convenient manner, using Godrej Microwave ovens. Eminent nutritionist Sushila

Purshottam Sharangdhar, director –HEAL (Health Education and Lifestyle

Management), shared nutrition benefits and tips on safe cooking using a microwave

oven.

Menezes(2006), “Construction plans for proposed $215,000,000 refrigerator plant” in

his article concluded that (G&B Appliances division), given growth projections that his

company has set for its appliance division, GODREJ APPLIANCES ,its urrent

manufacturing capacity would not be sufficient tp meet the demand. G&B ,for that

matter, is targeting a growth of 35% to40%.in addition, the company also said to be

seeking to add a number of innovative product both in terms of design and technology

in the coming months. As a result, GODREJ APPLIANCES,G&B’s largest division, is

currently gearing up tp build its 3rd refrigerator plant at Shirval, India.

Jain(2006),”Godrej appliances targets 15% growth in 2006” revealed that the

appliances division of G&B is targeting at least 15 per cent growth in 2006-07”In 2005-

06, the appliance division achieved Rs600 crore business and in the current fiscal it will

be looking at least 15 per cent growth. With new products, the appliance division will

expand very fast but the management is yet to finalise the company projection.

Chapter-III

Research methodology

Concept of marketing research

Marketing research is the systematic gathering, recording, and analysis of data about issues

relating to marketing products and services. The term is commonly interchanged with

market research; however, expert practitioners may wish to draw a distinction, in that

market research is concerned specifically with markets, while marketing research is

concerned specifically about marketing processes.

Role of marketing research

The task of marketing research is to provide management with relevant, accurate, reliable,

valid, and current information. Competitive marketing environment and the ever-increasing

costs attributed to poor decision making require that marketing research provide sound

information. Sound decisions are not based on gut feeling, intuition, or even pure judgment.

Marketing managers make numerous strategic and tactical decisions in the process of

identifying and satisfying customer needs. They make decisions about potential opportunities,

target market selection, market segmentation, planning and implementing marketing

programs, marketing performance, and control. These decisions are complicated by

interactions between the controllable marketing variables of product, pricing, promotion, and

distribution. Further complications are added by uncontrollable environmental factors such as

general economic conditions, technology, public policies and laws, political environment,

competition, and social and cultural changes. Another factor in this mix is the complexity of

consumers. Marketing research helps the marketing manager link the marketing variables

with the environment and the consumers. It helps remove some of the uncertainty by

providing relevant information about the marketing variables, environment, and consumers.

In the absence of relevant information, consumers' response to marketing programs cannot be

predicted reliably or accurately. Ongoing marketing research programs provide information

on controllable and non-controllable factors and consumers; this information enhances the

effectiveness of decisions made by marketing managers.

The role of marketing research in managerial decision making is explained further using the

framework of the "DECIDE" model:

D

Define the marketing problem

E

Enumerate the controllable and uncontrollable decision factors

C

Collect relevant information

I

Identify the best alternative

D

Develop and implement a marketing plan

E

Evaluate the decision and the decision process

The study

Need of study

Godrej is a big brand name but the emergence of other market players (LG, Samsung and the

like) in the appliance industry, has set a big benchmark and has also affected Godrej’s market

position adversely. The company has not been able to make a huge success in this segment

despite its extensive promotional campaigns and vast experience in the field. Customers are

the lifeblood of every business and its success largely depends on how it satisfies its

customers. Customer purchase preferences are affected by a number of reasons. In addition to

this, Location convenience and Dealer relationship is one of the most consideration followed

by the After Sales Services and Variety, in building a good brand image. Both these concepts

have been taken into consideration to study the factors affecting the customer purchase

preference and also the dealers’ perspective to deal with a particular appliance brand.

Thus this study is aimed to provide the management with some knowledge about its status in

market both in terms of sales and customer awareness. The research also aims to provide

some ideas to improve the company’s present condition.

Research objectives

To identify the factors which have a bearing on customers’ purchase decision

regarding appliances Consumer

To understand the customers’ outlook towards Godrej appliances Survey

To evaluate the dealer’s motive behind dealing in a particular brand. Dealer

To study the dealers’ views about Godrej appliances. Survey

(a) To identify which appliances are more saleable and which are

less saleable

(b) To identify reasons for low sales of the least saleable appliance

(c) To know the satisfaction level of dealers for Godrej.

(d) To know how Godrej can improve its present position.

Sources of data

There are two main sources of data - primary and secondary.

PRIMARY RESEARCH is conducted from scratch. It is original and collected to solve the

problem in hand. SECONDARY RESEARCH already exists since it has been collected for

other purposes. It is conducted on data published previously and usually by someone else.

Secondary research costs far less than primary research, but seldom comes in a form that

exactly meets the needs of the researcher.

This research involves both primary and secondary sources of data collection.

The primary information has been collected from electronic appliance dealers and

consumers in the form of Schedules.

The secondary information was gathered from various company manuals.

Research design

A research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in procedure.

In fact, the research design is the conceptual structure within which research is conducted; it

constitutes the blueprint for the collection, measurement and analysis of data. One may split

the overall research design into following parts:

a) the sampling design which deals with the method of selecting items to be observed for the

given study;

b) the observational design which relates to the condition under which the observations are to

be made;

c) the statistical design which concerns with the question of how many items are to be

observes and how the information and the data gathered are to be analyzed

d) The operational design which deals with the techniques by which the procedure specified

in the sampling, statistical and observational design can be carried out.

The research design for this project is descriptive.

Research instrument

The primary data was obtained during the course of doing research in a systematic manner

with the help of SCHEDULES.

This method of data collection is very much like the collection of data through questionnaire,

with little difference which lies in the fact that schedules (proforma containing a set of

questions) are being filled in by the enumerator. These enumerators along with schedules, go to

respondents, put to them the questions from the proforma in the order the questions are listed

and record the replies in the space meant for the same in the proforma. In certain situations,

schedules may be handed over to respondents and enumerators may help them in recording

their answers to various questions in the said schedules. Enumerators explain the aims and

objects of the investigation and also remove the difficulties which any respondent may feel in

understanding the implications of a particular question or the definition or concept of difficult

terms. This method of data collection is very useful in extensive enquiries and can lead to fairly

reliable results. It is, however, very expensive.

In this study, each Electronic Appliance Dealer and Consumer was asked the questions written in

the schedule. Everything was explained to them if in case they didn’t understand something and

thus their responses were noted down.

Sampling design

A sample design is a definite plan for obtaining a sample from a given population. It refers to

the technique or procedure the researcher would adopt in selecting items for the sample.

Sample design may as well lay down the items to be included in the sample i.e., the size of

the sample. Sample design is designed before data are collected. There are many sample

designs from which a researcher can choose. Some design is relatively more precise and

easier to apply than others.

Population

Population refers to part of universe from which the sample for conducting the research is

selected. Universe and population can be same in some researches. It may be finite or infinite.

In finite universe the number of items is certain, but in case of infinite the number of item is

infinite i.e., we cannot have an idea about the total number of items.

The population for this study is finite i.e. all electronic appliance dealers and consumers in

Ludhiana.

Sampling unit

Sampling unit refers to smallest possible individual eligible respondent. In this study the

sampling unit is

(a) Any electronic appliance dealer, and

(b) Any electronic appliance user in Ludhiana

Sampling size

This refers to the total number of respondents selected from the universe to constitute a

sample. The size of the sample should neither be excessively large, nor too small. It should be

optimum. An optimum sample is one which fulfils the requirement of efficiency,

representative ness, reliability and flexibility. The sample size for this research is 25 in case

of dealers and 50 in case of customers.

Sampling frame

Frame is the list of respondents i.e., list of all appliance dealers and customers in Ludhiana .

Sampling techniques

In this research study, non-probability convenience sampling is opted for. Convenience

sampling is done purely on the basis of convenience or accessibility. This sampling method

has been mainly chosen because of time, lack of dealers’ knowledge and lack of expertise.

Limitations of Study

The scope of the research was wide enough but the research was limited to Ludhiana

only.

Not all the dealers and customers could be contacted due to the lack of time.

The individuals being observed might behave in a different way when they know they

are being observed and thus data collected may not be a true picture of the actual self.

Generally, respondents were busy in their work and were not interested in responding

correctly.

While every effort was made to get the questionnaire filled personally, even then

some elements of biasness might have crept in. Some respondents themselves were

not clear about their likings and choices

Chapter-IV

Data analysis and Interpretation

(A)Dealer survey

Table 4.1: Experience of dealers

Particulars No. of respondents Percentage

Less than an year 1 4

1-3 yrs. 1 4

4-6 yrs. 4 16

7-10 yrs. 7 28

More than 10 yrs. 12 48

Total 25 100

Fig 4.1

Analysis & interpretation

As is clear from the table and figure, 48% of the respondents(dealers) had an experience of

more than 10 yrs, closely followed by 28% of the respondents having an experience of 7-10

yrs.

Since majority of the dealers have a huge experience in the field, so they are in a better

position to tell which brand is having a good market presence, ie. Which brand is preferred

more and how strong competition it gives to Godrej.

Table 4.2: Brands represented by dealers.

Particulars Total

LG 11

Samsung 12

Godrej 5

Whirlpool 5

Others 14

Fig 4.2


Of the 25 respondents, most of the dealers were dealing in other brands of appliances, which

include IFB, Voltas, Panasonic etc. This is closely followed by Samsung and LG, whereas

few dealers are dealing in Godrej and Whirlpool.

The data clearly interprets that very few dealers are dealing in Godrej ,but they are keeping it

with other brands of appliances. Samsung is the most preferred brand

amongst all.

Table 4.3: Products represented by dealers

Particulars Total

Refrigerator 2

Washing machine 0

AC 3

Microwave 0

All above 22

Fig 4.3


Most of the dealers were dealing in all the four appliances, ie. Refrigerator, washing machine ,AC

and microwave, and there are very few dealers(2 or 3) who are keeping refrigerator and AC alone.

Table4.4 Factors considered while dealing with a brand

Particulars Total

Customer choice 48

Brand image 70

Services 69

Schemes 122

Trade margins 172

Colour 215

Variety 130

Discount 159

Company’s incentives 140

Fig 4.4


The most important factor which dealers consider while dealing with a particular appliance

brand is customer choice, closely followed by brand image and services provided whereas the

least important factor is colour.

The data clearly interprets that customer holds great importance for any industry or dealer.

Table 4.5 Factors which influence dealers to do more sales

Particulars Total

Range of variety & colour 18

Commission offered 1

Attractive schemes 8

Advertising support during

new product launches

1

Timely information by

retailers

3

Salesmen helping to get

stock urgently

6

Settlement of retailer’s

schemes in time

1

Senior manager support 0

Fig 4.5


The range of variety and colour is the most important factor which influences dealers to do

more sales.

Table 4.6 Extra benefits given on bulk sales

Particulars Total

Commission 7

Rebate 4

Club membership 0

Family trip 1

Dealers’ promotion on

company’s brochure

4

None 12

Any other 0

Fig 4.6


Majority of the dealers do not get any extra benefit when they secure a large order, but a few

dealers do get commission and rebate on bulk sales.

It can be interpreted that dealers do not give much importance to the extra benefits that they

are getting from a particular company. For them it is imperative that the product satisfies the

customers or has a huge demand in the market.

Table 4.7 Dealership with Godrej appliances


Still dealing 6 24

Dealt in the past 4 16

Never dealt 15 60

Total 25 100

Fig 4.7


Of the 25 dealers, just 6 dealers are dealing in Godrej appliances, whereas majority of the

dealers have either quitted or have never dealt with it.

Godrej is having a low dealer network, which might be one of the factors for its decreasing

presence in the market and vice versa.

Table 4.8 Godrej Products dealt by dealers


Refrigerator 1 17

Washing machine 0 0

AC 0 0

Microwave 0 0

All above 5 83

Total 6 100

Fig 4.8


83% of the dealers still dealing with Godrej are having all its appliances.

Table4.9 Display of Godrej appliances


Centre 0 0

Corners 4 67

At the back of other products 2 33

Total 6 100

Fig 4.9


67% of the dealers have dispayed Godrej products at the corners and 33% have displayed them

at the back of other brands.

This interprets that dealers prefer other brands over Godrej.

Table 4.10 Rank of different Godrej products according to sales.(1- max sales, 4- least)

Particulars Total Rank

Refrigerator 16 3

Washing machine 6 1

AC 14 2

Microwave 24 4

Fig 4.10


In Godrej appliances, washing machine is the most saleable item, followed by refrigerator

and AC, whereas microwave is the least.

Table 4.11 Reasons for low sales of the least saleable item

Particulars Total

Poor quality 1

Unawareness 3

People prefer foreign brands 2

Poor sales services 1

Less features 3

Other reasons 1

Fig 4.11


Less features and unawareness are the major factors for low sales of Godrej microwave.

Many dealers don’t keep Godrej because its appliances have less features than other

appliance brands, and because it has limited dealer network, people are generally not aware

about its products.

Table 4.12 Satisfaction with regard to company’s offered services

Highly

satisfied

Satisfied Neutral Dissatisfied Highly

dissatisfied

Total 0 4 1 1 0

Mean 0.5

Fig 4.12


Since the mean score comes out to be 0.5, so the response of the dealers is close to

satisfaction level with regard to Godrej’s offered services for customers.

Table 4.13 Satisfaction of dealers with regard to Godrej’s promptness in launching new

products

Highly

satisfied


dissatisfied

Total 0 0 0 6 0

Mean -0.67

Fig 4.13


The chart clearly depicts that most of the dealers do not agree that Godrej is prompt and

proactive in launching new and innovative products.

Table 4.14 Dealers’ satisfaction with regard to promotional tools

Highly

satisfied


dissatisfied

Total 0 4 1 1 0

Mean 0.5

Fig 4.14


Since the mean score is close to satisfaction level, that denotes that the company undertakes

attractive promotional tools to launch its product.

Table 4.15 dealers’ views to continue their dealings with Godrej


Yes 5 83

No 1 17

Total 6 100

Fig 4.15


83% of the dealers(out of 6) will continue to deal with Godrej.

Table 4.16 Reasons why dealers quit/ never dealt with Godrej

Particulars Total

Poor quality 4

Commercial hassles 4

Co. doesn’t offer attractive schemes 0

Co. doesn’t offer proper margins to dealers 0

Poor sales service 9

Co.’s promotional tools are not effective 1

Low brand image 3

Fig 4.16


The major reasons why the dealers quit/ never dealt with Godrej are that it has a low brand

image, the company’s services are poor, the product is of poor quality and commercial

hassles.

Table 4.17 Dealers’ preference to deal with Godrej in future


Yes 1 5

No 18 95

Total 19 100

Fig 4.17


95% of the dealers would not like to deal with godrej and just 5% showed a positive response

towards it.

Basically the dealers are contended with the brands they are dealing in because those brands

have a good market presence and brand image.

(B) Consumer survey

Table 4.1(B): Monthly income of respondents


Less than 1 lakh 0 0

1-3 lakhs 7 14

3-5 lakhs 38 76

5-8 lakhs 5 10

Above 8 lakhs 0 0

Total 50 100

Fig 4.1(B)

Analysis and interpretation:

Most of the respondents surveyed had an annual income b/w 3-5 lakhs.

Income level is one of the most important factors affecting purchase decision. Customers

preferably go for a particular brand if they can easily afford it as some brands have

comparatively high price for the same product.

Table 4.2(B): No. of family members

Particulars No. of respondents

1-2 5

3-4 10

5-6 20

6-7 3

More than 7 2

Total 50

Fig 4.2(B)


Most of the respondents had 5-6 members in their family.

Larger the no. of members, greater is a possibility of purchase decision being influenced by a

large no. of people. Moreover, since more members consume a major share of income, so

customers simply go for a less expensive brand, ie. they are more concerned about the price

of the product than its brand.

Table 4.3(B): Factors influencing purchase decision

Particulars No. of responses

Price 96

Brand image 260

Prestige 354

Income level 140

Friends’ advice 280

Features 138

Discounts 318

Quality 244

Fig 4.2(B)


As can be inferred from the no. of responses, the most important factor being considered is

price of the appliances, closely followed by income level and features.

Table 4.4(B): Attributes considered before purchase

Particulars Refrigerator Washing

machine

AC Microwave

Price 70 70 140 70

Brand image 75 75 75 75

Quality 96 140 70 96

Features 138 96 138 138

After sales

services

140 138 96 140

Advertisement 260 280 260 260

Fig 4.4(B) REFRIGERATOR A

Fig 4.4(B) WASHING MACHINE

Fig 4.4(B) AC

Fig 4.4(B) MICROWAVE


In almost all the four appliances, price is the most considered factor, followed by brand

image, quality, features and after sales services. Advertisement had a very little impact on the

respondents.

Table 4.5(B): Purchase of Godrej electronic appliances


Yes 38 76

No 12 24

Total 50 100

Fig 4.5(B)


Out of the total respondents, 38 respondents have used Godrej home aplliances.

Table 4.6(B): Godrej appliance used


Refrigerator 15 47

Washing machine 5 16

AC 10 31

Microwave 2 6

Total 32 100

Fig 4.6(B)


47% of the respondents have used Godrej refrigerators, closely followed by AC(31%) and

very few respondents have used Godrej microwaves.

Table 4.7(B): Awareness about Godrej appliances


Print media 10

TV ads 12

Internet 2

Dealer 15

Friends 10

Fig 4.7(B)


The most effective medium of creating awareness is the dealers,followed by print media and

friends.

Table 4.8(B): Duration of usage of Godrej products

Particulars Refrigerator Washing

machine

AC Microwave

Less than 1 yr 0 2 10 0

1-2 yrs 5 10 20 0

2-4 yrs 16 15 12 0

More than 4 yrs 20 25 25 2

Fig 4.8(B) REFRIGERATOR


Fig 4.4(B) AC

Fig 4.4(B) Microwave


In case of refrigerators, most of the respondents have been using it for more than 4 yrs. and

no respondent has made a recent purchase of Godrej refrigerators.

In case of washing machines , respondents have been using it for more than 4 yrs but some

have also made a recent purchase of it.

For ACs, there are old as well as new customers.

For microwaves, very less no. of respondents have made a recent purchase.

Table 4.9(B): Performance of Godrej appliance

Highly

satisfactory

Satisfactory Neutral Dissatisfactory Highly

dissatisfactory

0 10 15 7 0

Mean 0.09

Fig 4.9(B)


The performance for Godrej appliances is neutral.

Table 4.10(B) : Purchase of Godrej appliances in future


Yes 15 47

No 17 53

Total 32 100

Fig 4.10(B)


53% of the respondents will purchase Godrej appliances in future whereas 47% will not

purchase it.

Table 4.11(B): Recommendation of Godrej appliances


Yes 15 47

No 17 53

Total 32 100

Fig 4.11(B)


The respondents who will purchase Godrej aplliances in future will also recommend it to

their friends.

Table 4.12(B): Other appliance brand used by respondents

Particulars LG Samsung Whirlpool Panasonic Others

Refrigerator 5 6 1 0 6

Washing

machine

4 4 6 0 4

AC 8 2 1 2 5

Microwave 4 6 0 2 6

Fig 4.12(B) REFRIGERATOR


Fig 4.12(B) AC

Fig 4.12(B) MICROWAVE


In refrigerators, ACs and microwaves, LG and Samsung are the most preferred brands and in

case of washing machines, its whirlpool.

Table 4.13(B): Display of Godrej appliances


Yes 8 44

No 10 56

Total 18 100

Fig 4.13(B)


Most of the respondents did not get a chance to see Godrej appliances during their purchase.

Table 4.14(B): Awareness about Godrej appliances


Refrigerator 18

Washing machine 15

AC 18

Microwave 6

Fig 4.14(B)


The respondents were known of Godrej refrigeratoes, washing machines and ACs but very

few were known of Godrej microwaves.

Table 4.15(B): Preference for future purchase of Godrej appliances


Yes 2 11

No 16 89

Total 18 100

Fig 4.15(B)


89% of the respondents will not purchase Godrej appliances in future.

Conclusion

For dealers, customer choice is the most important factor.

Consumers have a preference/loyalty towards particular brand of consumer durables

and are not ready to buy any other brand so easily.

Dealer relationship is one of the most considerations followed by the After Sales

Services and Variety provided by the brand also plays a crucial role.

Godrej though provides good services but it is not it is not in line with its competitors.

Customers’ decisions are influenced by their level of income and price of the product.

The respondents who have used Godrej have a neutral response for it.

LG and Samsung are presently the most preferred brands.

Most of the respondents are well satisfied with the brands they are using and will not

purchase Godrej appliances in future.

Suggestions

As compared to competitors, Godrej appliances have a low brand image , so it

should make efforts to popularize its brand name in market. This means

creating more brand awareness amongst consumers which can be done

through promotions.

Since the customer demand is very low for Godrej , it mainly needs to

improve on its promotional tools in both volume and frequency.

It should offer large variety in its appliances.

Godrej must focus on increasing its marketing expenditure and bring more

personal approach in their communication.

Company should increase its dealer network in order to enhance the

availability of product in market.It should also offer attractive schemes to the

present dealers in order to retain them.

Company can offer lucrative deals to the dealers eg. slab discounts, etc.so that

more dealers are attracted to buy Godrej product and hence dealership network

of Godrej can be enlarged. Also this will increase the availability of product in

market., By offering good deals to dealers, Godrej can also increase its sales

because dealers will encourage volume sales of Godrej to earn more profits for

themselves.

Bibliography

Internet:

http://en-wikipedia.org/wiki/Godrej-Group

http://www.godrej.com/godrej/GodrejIndustries/index.aspx?id=12

http://www.godrej.com/GodrejIndustries/ourcompanies.aspx?

http://www.godrej.com/GodrejIndustries/ourcompanies.aspx?id=12&mendid=1095

http://www.godrej.com/godrej/GodrejIndustries/index.aspx?id=12

http://en-wikipedia.org/wiki/Godrej-Group

id=12&mendid=1095

http://www.karmayog.com/lists/Godrejtrust.htm

http://www.GodrejAppliances.com

http://ex-wikipedia-org/wiki/Marketing-Research

Periodicals and Journals

Hundal(2008), “Significant considerations in the purchase of consumer

durables” Indian Journal of marketing , Vol VII,No.2,May 2008,pg 6-15

Reddy and Sivakumar(2005), “Growth and evaluation of Indian washing

machine industry in India”, Indian Journal of Marketing Vol XXVIII,

No. 7, July 2005, Pg 17-22

Annexure

Q1. For how many years you are into this business?

(a) less than a year

(b) 1-3 yrs.

(c) 4-6 yrs.

http://ex-wikipedia-org/wiki/Marketing-Research

http://www.GodrejAppliances.com/

http://www.karmayog.com/lists/Godrejtrust.htm

http://www.godrej.com/GodrejIndustries/ourcompanies.aspx?id=12&mendid=1095

(d) 7-10 yrs.

(e) More than 10 yrs.

Q2. Mark the companies that you are representing. (You can tick more than one)

(a) LG

(b) Samsung

(c) Godrej

(d) Whirlpool

(e) Others, please specify

Q3. What products you are dealing in?

(a) Refrigerators

(b) Washing machines

(c) AC

(d) Microwaves

(e) All above

Q4. Rank the following from 1 to 9 which you consider while dealing with a particular co.

(Rank 1 to the most preferred, 9 to the least)

(a) Customer choice (g) Variety

(b) Brand image (h) Discount

(c) Services (i) Company’s incentives

(d) Schemes

(e) Trade margins

(f) Color

Q5. Which factors influence you to do more sales?(You can tick more than one)

(a) Range of variety & color

(b) Commission offered

(c) Attractiveness of consumer schemes

(d) Adequacy of advertising support during new product launches or new schemes

(e) Timely information by retailers

(f) Salesmen helping to get stock for urgent requirement

(g) Settlement of retailers’ schemes in time

(h) Support by senior manager to solve problem

Q6. When secured a large order, I am paid the following compensation-

(a) commission

(b) rebate

(c) club membership

(d) family trip

(e) dealer’s promotion on company’s brochure

(f) none

(g) Any other preference, please specify

Q7. Have you dealt with Godrej appliances? (If (i), move to next ques., if (ii) or (iii), then move

to Q16.)

(i) Still dealing

(ii) Dealt in past

(iii) Never dealt

Q8. Which products of Godrej you are dealing in?

(a) Refrigerator

(b) Washing machine

(c) AC

(d) Microwave

(e) Others, please specify

Q9. Where have you displayed Godrej products in your showroom?

(a) Centre

(b) Corners

(c) At the back of other products

Q10. Rank the following products from 1 to 4 acc. to the product that generates more sales?

(1 to product generating max. sales, 4 the least)

(a) Refrigerator

(b) Washing machine

(c) AC

(d) Microwave

Q11. Mark reasons for low sales of the product ranked “4th” in previous question. (You can tick

more than one)

(a) Poor quality

(b) Unawareness

(c) People prefer foreign brands

(d) poor sales services

(e) less features

(f) Other reasons

Q12. Are you satisfied with the company offered services for customers?

Highly Satisfied Neutral Dissatisfied Highly

Satisfied Dissatisfied

Q13. Co. is prompt and proactive in launching new and innovative products?



Q14. Co. undertakes attractive promotional tools to launch new products?



Q15. Would you continue dealing with Godrej appliances? Yes/No

Q16. Any problems if you faced with Godrej?

Q17. According to you how the Co. can improve its present position?

Thank you

Q18. Reasons why you never dealt/ quit dealing with Godrej?

(a)Poor quality

(b)Commercial hassles

(c)Co. doesn’t offer attractive schemes

(d)Co. doesn’t offer proper margins to dealers

(e) Poor sales services

(f)Co.’s promotional tools are not effective

(g) Low brand image

Q19. Would you like to deal with Godrej in future? Yes/No

Thank you

Summer traing project report

Documents

godrej group godrej

bonafide research project

marketing department

pirojsha godrej foundation

godrej boyce manufacturing

study research objectives

reema jaggi of pcte

corporate profile1